Mortgage matching system and method

ABSTRACT

A computer-implemented method is disclosed for rewarding mortgage customers of a financial institution. The method includes providing enrollment in a mortgage matching system to eligible mortgage customers, wherein eligibility requirements include the requirement that eligible mortgage customers hold both a mortgage account and a checking account with the financial institution. The customer makes periodic mortgage payments from the checking account to the mortgage account. The method monitors continued compliance with the eligibility requirements and submission of the periodic payments using a monitoring engine. The method further includes determining a reward payment amount to be made to each complying mortgage customer, wherein the reward payment amount is a predetermined percentage of principal and interest paid during a predetermined time period. The calculated reward payment amount is transferred to a pre-selected accessible location for each complying mortgage customer.

PRIORITY

This application claims priority from provisional application Ser. No.61/222,178, filed on Jul. 1, 2009.

TECHNICAL FIELD

Embodiments of the invention are related systems and methods forincreasing mortgage customer loyalty and in particular to methods forbenefiting mortgage customers while simultaneously cross-marketingfinancial services products.

BACKGROUND OF THE INVENTION

Mortgage financing has evolved over recent years to become increasinglycomplex and confusing to borrowers with the proliferation of options forloan configuration. For lenders, mortgage financing has becomeincreasingly competitive, with borrowers receiving frequent offers torefinance under ostensibly more favorable terms. Thus, mortgagerefinancing occurs frequently and customer loyalty to mortgage financershas been minimal.

In general, financial institutions have devised various mechanisms forpromoting customer loyalty. For example, rewards programs have becomeincreasingly associated with credit cards and consumers often favor onecredit card over another because of the associated rewards generatedwith each purchase.

Some card issuers have sought to employ rebates in order to increase useof credit cards. Credit card rebate systems have evolved that provide arebate tied to general card usage. The entire benefit is enjoyed byconsumers who receive a check or credit on their account. However, suchcredit card rebate systems provide no particular long-term benefits tothe cardholder or the card issuer—especially benefits that relate to thecard issuer's business. There is limited loyalty-building to encouragecardholders to maintain their existing accounts or open new ones.Moreover, because the rebate is sent directly to the consumer, who canspend it as he/she pleases, there is no mechanism to encourage theconsumer to consider other financial products offered by the card issueror associated financial companies. Nor is there a way to channel fundsback to the card issuer to expand business and cross-sell. This is alost opportunity and significant disadvantage.

Other institutions have suggested credit card systems that transfer apredetermined amount of money to an investment account periodically andbill the cardholder through the credit card account. For example,various systems provide a credit card in combination with a rebate thatis also transferred to the investment account.

Often, rewards programs are made more attractive through joint ventureswith partners of the card issuers. For example, airlines may providemiles for credit card usage or partnering merchants may provide extrarewards points for purchases

Currently, a solution is needed for providing benefits to mortgagecustomers and potential mortgage customers in order to enhance customerloyalty.

SUMMARY OF THE INVENTION

In one aspect of the invention, a computer-implemented method isprovided for rewarding mortgage customers of a financial institutionwith a reward payment amount. The method comprises providing enrollmentin a mortgage matching system to eligible mortgage customers, whereineligibility requirements include the requirement that eligible mortgagecustomers hold both a mortgage account and a checking account with thefinancial institution. The method additionally comprises enabling thecustomer to make periodic mortgage payments from the checking account tothe mortgage account and monitoring for continued compliance with theeligibility requirements and submission of the periodic payments using amonitoring engine implemented by at least one computer processor. Themethod additionally comprises determining a reward payment amount to bemade by the financial institution to each complying mortgage customerusing a fulfillment engine implemented by the at least one computerprocessor, wherein the reward payment amount is a predeterminedpercentage of principal and interest paid by each complying mortgagecustomer during a predetermined time period. The method additionallycomprises transferring the calculated reward payment amount to apre-selected location for each complying mortgage customer, wherein thepre-selected location is accessible to the corresponding complyingmortgage customer.

In an additional aspect of the invention, a computer-implemented systemis provided for rewarding mortgage customers of a financial institutionwith a reward payment amount. The system comprises an enrollment enginefor enrolling eligible mortgage customers in a mortgage matching system,wherein eligibility requirements include the requirement that eligiblemortgage customers hold both a mortgage account and a checking accountwith the financial institution and make periodic payments from thechecking account to the mortgage account. The system additionallyincludes a monitoring engine for monitoring continued compliance withthe eligibility requirements and submission of the periodic payments,the monitoring engine implemented by at least one computer processor.The system additionally includes a fulfillment engine implemented by theat least one computer processor, the fulfillment engine comprising:calculation components for determining a reward payment amount to bemade by the financial institution to each complying mortgage customer,wherein the reward payment amount is a predetermined percentage ofprincipal and interest paid by each complying mortgage customer during apredetermined time period. The fulfillment engine additionally includesreward transfer components for transferring the calculated rewardpayment amount to a pre-selected location for each complying mortgagecustomer, wherein the pre-selected location is accessible to thecorresponding complying mortgage customer.

In an additional aspect of the invention, a computer-implemented methodis provided for rewarding mortgage customers of a financial institutionwith a reward payment amount. The method comprises providing enrollmentin a mortgage matching system to eligible mortgage customers, whereineligibility requirements include the requirement that eligible mortgagecustomers hold both a mortgage account and a checking account with thefinancial institution. The method further comprises enabling thecustomer to automatically make periodic mortgage payments from thechecking account to the mortgage account and monitoring continuedcompliance with the eligibility requirements and automatic submission ofthe periodic payments using a monitoring engine implemented by at leastone computer processor. The method additionally includes determining areward payment amount to be made by the financial institution to eachcomplying mortgage customer using a fulfillment engine implemented bythe at least one computer processor, wherein the reward payment amountis a predetermined percentage of principal and interest paid by eachcomplying mortgage customer through the auto-payment system during apredetermined time period. The method additionally includes transferringthe calculated reward payment amount to the mortgage account for eachcomplying mortgage customer. Embodiments of the method additionallyinclude processing a refinance application for at least one complyingmortgage customer to provide a new mortgage loan for the complyingmortgage customer and calculating accrued rewards using a refinancingengine implementing a refinancing processor prior to closing on therefinance application. The method additionally includes reducing apayoff amount by the calculated accrued rewards or crediting thecalculated accrued rewards to an account held at the financialinstitution and enrolling the new mortgage loan in the mortgage matchingsystem.

BRIEF DESCRIPTION OF THE DRAWINGS

The present invention is described in detail below with reference to theattached drawings figures, wherein:

FIG. 1 is a block diagram illustrating an operating environment formortgage matching system in accordance with an embodiment of theinvention;

FIG. 2 is a block diagram illustrating components of a mortgage matchingsystem in accordance with an embodiment of the invention;

FIG. 3 is a block diagram illustrating a computer system implementing amortgage matching system in accordance with an embodiment of theinvention;

FIG. 4 is a flow chart illustrating a mortgage matching process inaccordance with an embodiment of the invention;

FIG. 5 is a flow chart illustrating an enrollment method of the mortgagematching system in accordance with an embodiment of the invention;

FIG. 6 is a flow chart illustrating a closing method of the mortgagematching system in accordance with an embodiment of the invention;

FIG. 7 is a flow chart illustrating a monitoring method of the mortgagematching system in accordance with an embodiment of the invention;

FIG. 8 is a flow chart illustrating a fulfillment method of the mortgagematching system in accordance with an embodiment of the invention;

FIG. 9 is a flow chart illustrating a method for implementing selectableoptions in the mortgage matching system in accordance with an embodimentof the invention; and

FIG. 10 is a flow chart illustrating operation of refinance componentsin the mortgage matching system in accordance with an embodiment of theinvention.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS

Embodiments of the present invention are directed to a method and systemfor financial institutions to reward mortgage customers complying withcertain predetermined conditions. Regular payment of a mortgage incombination with maintenance of another account at the financialinstitution will result in a reward being generated for the customer. Inembodiments of the invention, the system enables accelerated payment ofthe mortgage through contributions made by the financial institution ifcustomers meet the predetermined conditions. Thus, customers meeting thepredetermined conditions will be able to more quickly pay off theirmortgages through financial institution contribution.

FIG. 1 is a block diagram illustrating an operating environment formortgage matching system in accordance with an embodiment of theinvention. A financial institution 100 may be connected over a network10 with multiple customer systems 20 a . . . 20 n.

The financial institution 100 may have multiple financial institutioncomputing systems 110. Computing systems 110 may be interconnected witha mortgage matching system 200, which will be further described herein,and with databases 102, 104 and with accounts 120 a . . . 120 n. Theaccounts 120 a . . . 120 n may include various types of accounts, suchas checking accounts, credit accounts, savings accounts, mortgageaccounts, investment accounts, etc. Embodiments of the invention linkthe mortgage matching system 200 with a mortgage account and a checkingaccount of the financial institution. However, additional embodimentsmay incorporate other of the aforementioned account types. Theabove-described components may be connected over a network.

The network 10 as well as networks contained within the financialinstitution 100 may include a wired or wireless local area network (LAN)and a wide area network (WAN), wireless personal area network (PAN) andother types of networks. When used in a LAN networking environment,computers may be connected to the LAN through a network interface oradapter. When used in a WAN networking environment, computers typicallyinclude a modem or other communication mechanism. Modems may be internalor external, and may be connected to the system bus via the user-inputinterface, or other appropriate mechanism. Computers may be connectedover the Internet, an Intranet, Extranet, Ethernet, or any other systemthat provides communications. Some suitable communications protocols mayinclude TCP/IP, UDP, or OSI for example. For wireless communications,communications protocols may include Bluetooth, Zigbee, IrDa or othersuitable protocol. Furthermore, components of the system may communicatethrough a combination of wired or wireless paths.

Customer systems 20 a . . . 20 n may be personal computing systems orany other type of system capable of connecting over the network 10 withthe financial institution 100.

FIG. 2 is a block diagram illustrating components of a mortgage matchingsystem 200 in accordance with an embodiment of the invention. Themortgage matching system 200 may include an enrollment engine 210,closing components 220, reporting components 230, monitoring engine 240,fulfillment engine 250, exception handler 260, refinance components 270,and program selection components 280. These components may includesoftware and/or hardware. Software components are implemented by one ormore financial institution processors in order to execute the methodsdescribed herein.

The mortgage matching system 200 may additionally include databases suchas a mortgage match records database 290 and a mortgage match rulesdatabase 292. As will be further described below, these databases 290and 292 are accessible to the other components of the system so thatdata and rules may be retrieved when needed as well as stored andrevised when appropriate.

While the components of FIG. 2 are shown as discrete components, theymay be provided or developed in various combinations of the illustratedcomponents or alternatively, the displayed components may be dividedinto multiple components. Furthermore, the components of FIG. 2 may allbe interconnected for processing. The components may, for example, beconnected over one or more networks or may exist as software modulesexecuted by one or more computer processors.

The enrollment engine 210 may be used to enroll eligible customers inthe mortgage matching system. Enrollment may occur, for example, at afinancial institution branch, over the telephone, or through a computingdevice. The enrollment engine 210 determines eligibility for customersobtaining a new mortgage. Predetermined eligibility conditions may, forexample, require new enrollees in the mortgage matching system to be newmortgage customers of the financial institution and to hold or establisha checking account with the financial institution. The predeterminedconditions may for example require new enrollees in the mortgagematching system to be new mortgage customers of the financialinstitution although in some instances, retroactive enrollment may beenabled. Program participants may be required to set up the checkingaccount prior to closing on the mortgage or alternatively at least priorto making a first mortgage payment. The conditions may additionallyrequire that the enrollees make mortgage payments directly from thechecking account in order to participate in the mortgage matchingprogram. Furthermore, in embodiments of the invention, customers may berequired to set up ACH auto-payment from the checking account to themortgage account.

If the enrollment engine 210 determines that customers are eligible forenrollment and approves the application for enrollment, the system maygenerate a unique electronic coupon code that will be accessible to beutilized through enrollment, closing, and participation in the programfor account identification purposes. Additionally, the enrollmentcomponents may create a file of enrolled customers for storage, such asin the mortgage match records database 290.

The closing components 220 operate to close on the mortgage. The closingcomponents 220 in the mortgage matching environment may require thatpre-conditions be met prior to closing on the loan. In embodiments ofthe invention, the opening of a checking account at the financialinstitution by the mortgage customer is required prior to proceeding onclosing the eligible loan.

The reporting components 230 may operate through various phases of themortgage matching system 200. For example, the closing components 230may operate to welcome a new customer after closing of a loan, sendinformational materials, and forward periodic statements, such asmonthly, quarterly, or yearly statements. The reporting components 230may generate the required communications and may deliver themelectronically or schedule them to be delivered by manual methods. Thus,reporting components 230 of the mortgage matching system 200 keepparticipants informed regarding compliance issues, earned rewards thatwill be paid by the financial institution, and rewards that have alreadybeen paid by the financial institution. In one preferred embodiment, therewards are paid in order to reduce outstanding principal and thereports indicate the principal reduction.

After enrollment, the mortgage matching system 200 activates monitoringengine 240 to ensure continued compliance with the predeterminedconditions prior to allowing a reward to be distributed. The monitoringengine 240 confirms continued compliance with eligibility requirementsand pre-conditions. For example, the monitoring engine 240 may validatecontinued existence of a checking account and the continued use of thechecking account to make periodic mortgage payments. In embodiments ofthe invention in which automatic payment is required, the monitoringengine 240 may periodically confirm the customer's selection ofautomatic ACH payments. Upon verifying compliance, the first rewardpayment may, for example be made after one full year of payments havebeen by the program participant. If non-compliance or partialnon-compliance is detected, the program may be interrupted orterminated. Thus, any disruption in compliance, such as termination ofautomatic mortgage payments, termination of the checking account or morethan one late payment throughout the program, may nullify the customer'sparticipation in the mortgage matching system and no reward will then begenerated.

Once compliance has been verified, the fulfillment engine 250 mayimplement reward determination/calculation components to calculate anaccrued reward. The fulfillment engine 250 may further be implemented inorder to transfer the accrued reward to the mortgage account or toanother pre-selected location, as will be further explained below.Verification of the active checking account will occur prior to issuanceof the annual reward.

The fulfillment engine 250 determines the reward payment to betransferred to complying customers and may include funds transfercomponents for transferring the calculated rewards to the customermortgage account. In embodiments of the invention, the fulfillmentengine 250 may also transfer the calculated reward to an alternativelocation of the customer's choosing. The calculated reward is due fromthe financial institution to the customer and does not merelyredistribute the customer's own financial resources. In embodiments ofthe invention, operation of the fulfillment engine 250 is triggeredafter twelve months of customer participation in the mortgage matchingprogram. Other time periods may also be utilized and are considered tobe within the scope of the invention.

In embodiments of the invention, —the fulfillment engine 250 calculatesone (1) % of one month's scheduled monthly principal and interest (P&I)payment of the new mortgage and totals over a twelve (12) month period.The 1% principal reduction calculation will typically apply to scheduledprincipal and interest payments only. The calculated amount wouldtypically not apply to additional principal payments made by theborrower or to payments for escrowed items such as taxes and insurance.In one preferred embodiment in which the calculated reward is applied toprincipal reduction, the principal reduction in the first and last yearsof the mortgage period may be based on the number of monthly payments inthat year. All other anniversary principal reductions may be calculatedand totaled over the prior 12 month period. The sum may be applied tothe outstanding principal balance each year on or about the anniversarydate of the loan origination. In embodiments of the invention, a cap maybe placed on the reduction of principal. For example, an annual cap,such as a $500 annual cap may be placed on the reduction of principal.

In other embodiments of the invention, the fulfillment engine 250 maycalculate a reward based on an ARM. Thus, each time the ARM adjusts, thetotal monthly P&I payment will also adjust. The fulfillment engine 250may calculate this adjustment based on a new balance that incorporatesthe earned rewards.

In additional embodiments of the invention, a customer may have multiplemortgage accounts or a home equity account in addition to a mortgageaccount. In this instance, an embodiment of the invention allowsselection of one account for earning rewards. However the fulfillmentengine 250 may apply a higher percentage of the P&I payment for therewards. For example, rewards may be equal to 1.5% of the P&I paymentfor the selected mortgage.

Furthermore, as set forth above, an annual can may be placed onreduction of principal. However, this annual cap may vary based on thetype of account linked to the mortgage matching system or the averagemonthly or yearly balance maintained in the account. For example, thesystem may be linked to a regular checking account, an investmentaccount, a premier account, or a platinum account. The type of accountmay be determinative of the yearly rewards cap.

The exception handler 260 may be triggered upon detection ofnon-compliance by the monitoring engine 240. The exception handler 260may also be triggered by other components of the system as necessary.For example the exception handler 260 may handle problems resulting fromthe enrollment process such as lost or misplaced coupon codes, ACHpayment setup problems and delays, etc. The exception handler 260 mayvoid enrollment if a payment has been missed or delayed. The exceptionhandler 260 may be configured to void enrollment based on a singlemissed payment, multiple missed payments, or one or more late payments.Alternatively, the exception handler 260 may take other actions, such asprompting action from the reporting components 230 to issue warnings orother communications.

In embodiments of the invention, if the exception handler 260 detectsany disruption in enrollment of automatic mortgage payments, thechecking account or more than one late payment throughout the program,enrollment will be nullified. Further, the exception handler 260 mayrefer the account to servicing to assess a late payment fee if a paymentreceived thirty (30) days or any other set number of days after thepayment due date.

Refinance components 270 may operate to determine benefits in the eventthat an enrolled customer obtains a mortgage refinance. The refinancecomponents 270 determine whether the customer is eligible to continuewith the program and the amount of reward or benefit that will betransferred to the customer.

The program selection components 280 may be implemented in embodimentsof the invention to provide a user interface with selectable options forthe destination of the calculated reward. For example, while the rewardmay be utilized to pre-pay the customer's mortgage, embodiments of theinvention may also allow a user to select an alternative destination forthe reward, such as a checking account, a savings account, a home equityaccount, a credit account, or an investment account. Embodiments of theinvention may also allow the user to transfer the reward to a creditcard rewards program. This option may be implemented, for instance, whenthe user holds a credit card from the financial institution and thecredit card implements a rewards feature. The rewards may also betransferred to an overall rewards program, such that all rewards fromthe financial institution are combined, and may be implemented by theuser in any manner allowed by the financial institution. In addition toselecting payment of debts or credit card rewards, a plan participantcould also donate the rewards to a charitable or non-profitorganization.

The mortgage match records database 290 may include information relatedto enrolled customers and enrolled customer accounts. Furthermore,during the course of customer enrollment, payment data, rewards data,and any additional data required for utilization by the mortgagematching system 200 may be stored in and retrieved from the recordsdatabase 290.

The mortgage match rules database 292 may be provided to store rulessuch as eligibility rules accessible to the enrollment engine 210 andcompliance rules accessible to the monitoring engine 240. The rulesdatabase 292 may further store rewards calculation rules accessible tothe fulfillment engine 250 and any other rules required for processingby the remaining components of the mortgage matching system 200.

FIG. 3 is a block diagram illustrating a computing system 300implementing a mortgage matching system in accordance with an embodimentof the invention. This configuration is merely exemplary and should notbe construed as limiting. It is likely that multiple computing systemsor devices will be utilized to implement the method and system inaccordance with embodiments of the invention. The computing system 300may include a processing unit 310, a peripheral interface 320, a userinput interface 330, a system bus 340, a system memory 350, a networkinterface 390, a connected modem 392, and a memory interface 394. Thesystem bus 340 may be provided for coupling the various systemcomponents. In embodiments of the invention, certain components, such asmodem 392, need not be included.

Computers typically include a variety of computer readable media thatcan form part of the system memory and be read by the processing unit.By way of example, and not limitation, computer readable media maycomprise computer storage media and communication media. The systemmemory 350 may include computer storage media in the form of volatileand/or nonvolatile memory such as read only memory (ROM) 360 and randomaccess memory (RAM) 370.

A basic input/output system (BIOS) 362, containing the basic routinesthat help to transfer information between elements, such as duringstart-up, is typically stored in ROM 360. RAM 370 typically containsdata and/or program modules that are immediately accessible to and/orpresently being operated on by processing unit. The data or programmodules may include an operating system 374, mortgage matching system200, other program modules 376, and program data 380. The operatingsystem may be or include a variety of operating systems such asMicrosoft Windows® operating system, the Unix operating system, theLinux operating system, the Xenix operating system, the IBM AIX™operating system, the Hewlett Packard UX™ operating system, the NovellNetware™ operating system, the Sun Microsystems Solaris™ operatingsystem, the OS/2™ operating system, the BeOS™ operating system, theMacintosh™® operating system, the Apache™ operating system, an OpenStep™operating system or another operating system of platform.

At a minimum, the memory 350 includes at least one set of instructionsthat is either permanently or temporarily stored. The processor 310executes the instructions that are stored in order to process data. Theset of instructions may include various instructions that perform aparticular task or tasks, such as those shown in the appendedflowcharts. Such a set of instructions for performing a particular taskmay be characterized as a program, software program, software, engine,module, component, mechanism, or tool. The mortgage matching system 200may include a plurality of software processing modules stored in amemory as described above and executed on a processor in the mannerdescribed herein. The program modules may be in the form of any suitableprogramming language, which is converted to machine language or objectcode to allow the processor or processors to read the instructions. Thatis, written lines of programming code or source code, in a particularprogramming language, may be converted to machine language using acompiler, assembler, or interpreter. The machine language may be binarycoded machine instructions specific to a particular computer. Anysuitable programming language may be used in accordance with the variousembodiments of the invention. Illustratively, the programming languageused may include assembly language, Ada, APL, Basic, C, C++, COBOL,dBase, Forth, FORTRAN, Java, Modula-2, Pascal, Prolog, REXX, and/orJavaScript for example. In embodiments of the invention, Ab Initio™software is implemented and structured query language (SQL) isimplemented for coding.

Further, it is not necessary that a single type of instruction orprogramming language be utilized in conjunction with the operation ofthe system and method of the invention. Rather, any number of differentprogramming languages may be utilized as is necessary or desirable.

Also, the instructions and/or data used in the practice of the inventionmay utilize any compression or encryption technique or algorithm, as maybe desired. An encryption module might be used to encrypt data. Further,files or other data may be decrypted using a suitable decryption module.

The computing environment may also include other removable/nonremovable,volatile/nonvolatile computer storage media. For example, a hard diskdrive may read or write to nonremovable, nonvolatile magnetic media. Amagnetic disk drive may read from or writes to a removable, nonvolatilemagnetic disk, and an optical disk drive may read from or write to aremovable, nonvolatile optical disk such as a CD ROM or other opticalmedia. Other removable/nonremovable, volatile/nonvolatile computerstorage media that can be used in the exemplary operating environmentinclude, but are not limited to, magnetic tape cassettes, flash memorycards, digital versatile disks, digital video tape, solid state RAM,solid state ROM, and the like. The storage media are typically connectedto the system bus through a removable or non-removable memory interface.

The processing unit 310 that executes commands and instructions may be ageneral purpose computer, but may utilize any of a wide variety of othertechnologies including a special purpose computer, a microcomputer,mini-computer, mainframe computer, programmed micro-processor,micro-controller, peripheral integrated circuit element, a CSIC(Customer Specific Integrated Circuit), ASIC (Application SpecificIntegrated Circuit), a logic circuit, a digital signal processor, aprogrammable logic device such as an FPGA (Field Programmable GateArray), PLD (Programmable Logic Device), PLA (Programmable Logic Array),RFID processor, smart chip, or any other device or arrangement ofdevices that is capable of implementing the steps of the processes ofthe invention.

It should be appreciated that the processors and/or memories of thecomputer system need not be physically in the same location. Each of theprocessors and each of the memories used by the computer system may bein geographically distinct locations and be connected so as tocommunicate with each other in any suitable manner. Additionally, it isappreciated that each of the processor and/or memory may be composed ofdifferent physical pieces of equipment.

A user may enter commands and information into the computer through auser interface 330 that includes input devices such as a keyboard andpointing device, commonly referred to as a mouse, trackball or touchpad. Other input devices may include a microphone, joystick, game pad,satellite dish, scanner, voice recognition device, keyboard, touchscreen, toggle switch, pushbutton, or the like. These and other inputdevices are often connected to the processing unit through a user inputinterface that is coupled to the system bus, but may be connected byother interface and bus structures, such as a parallel port, game portor a universal serial bus (USB).

One or more monitors or display devices may also be connected to thesystem bus via an interface 320. In addition to display devices,computers may also include other peripheral output devices, which may beconnected through an output peripheral interface. The computersimplementing the invention may operate in a networked environment usinglogical connections to one or more remote computers, the remotecomputers typically including many or all of the elements describedabove.

Various networks may be implemented in accordance with embodiments ofthe invention. These networks may include any of those described abovewith reference to FIG. 1. Although many other internal components of thecomputer are not shown, those of ordinary skill in the art willappreciate that such components and the interconnections are well known.Accordingly, additional details concerning the internal construction ofthe computer need not be disclosed in connection with the presentinvention.

Those skilled in the art will appreciate that the invention may bepracticed with various computer system configurations, includinghand-held wireless devices such as mobile phones or PDAs, multiprocessorsystems, microprocessor-based or programmable consumer electronics,minicomputers, mainframe computers, and the like. The invention may alsobe practiced in distributed computing environments where tasks areperformed by remote processing devices that are linked through acommunications network. In a distributed computing environment, programmodules may be located in both local and remote computer storage mediaincluding memory storage devices.

Although the aforementioned components are shown as discrete modules,each of the modules may alternatively be integrated with one another. Ifthe modules are discrete, multiple modules may operate cooperatively aswill be further explained below.

FIG. 4 is a flow chart illustrating a computing system implementing amortgage matching system in accordance with an embodiment of theinvention. The method begins in S400 and in S410, the enrollment engineof the mortgage matching system processes enrollment of a customer inthe mortgage matching system. In S420, the closing components close themortgage loan for the enrolled customer. In 5430, reporting componentsmay operate to forward notification of the successful enrollment to thecustomer. In S440, the mortgage matching system conducts ongoingmonitoring to ensure compliance with rules and/or pre-conditions of themortgage matching system. If all conditions checked are fulfilled inS450, the mortgage matching system proceeds to S470 for operation of thefulfillment engine, which calculates and transfers the reward to themortgage customer. If the conditions are not fulfilled in S450, theexception handler operates in S460 to determine appropriate next steps.In embodiments of the invention, the exception handler may operatesimultaneously with other system components and/or periodicallythroughout a customer's enrollment in order to detect and handleexceptions.

FIG. 5 is a flow chart illustrating an enrollment method performed bythe mortgage matching system in accordance with an embodiment of theinvention. The method begins in S500 and the enrollment engine receivesthe mortgage application in S502. In S510, the enrollment engineprovides program information to the mortgage customer. If the enrollmentengine receives no indication that the customer wants to opt in at S512,the mortgage proceeds to closing in the usual manner in S520. However,if the enrollment engine receives an indication that the customer wantsto opt into the mortgage matching system in S512, the enrollment enginethen proceeds to determine whether the customer holds a checking accountwith the financial institution in S522. In embodiments of the invention,if the customer does not hold a checking account in S522, the enrollmentengine downloads an electronic coupon code in S530, which may be usablein S540 in order to open a checking account with the financialinstitution. If in S522, the enrollment engine determines that thecustomer has a checking account, the enrollment engine may causedownloading of a coupon code in S540 and thereafter proceed withenrollment in S560. The method ends in S570.

FIG. 6 is a flow chart illustrating a closing method in accordance withan embodiment of the invention. The method begins in S600 and theclosing engine receives the completed loan documents in S610. In S620,the closing engine processes the completed documents and forwards themfor servicing. The closing engine creates mortgage matching systemrecords for the new loan in S630 and may store the records in thedatabase 290. The method ends in S640.

FIG. 7 is a flow chart illustrating a monitoring method in accordancewith an embodiment of the invention. The method begins in S700 and themonitoring engine searches for valid checking accounts for enrolledcustomers in S710. If a valid checking account has not been establishedin S720, the monitoring engine refers the customer record to theexception handler in S770 for exception handling. If a valid checkingaccount has been established in S720, the monitoring engine may checkfor ACH enrollment completion in S730 if the mortgage matching systemrequires this contingency. If enrollment has not been completed in S740,the monitoring engine refers the customer record to the exceptionhandler in S770 for processing. If, however, in S740, enrollment hasbeen completed, the monitoring engine may check for ACH payments inS750. If the customer has been ACH compliant in 760, the monitoringengine may refer the customer record to the fulfillment engine forfulfillment in S780. If the customer had not been ACH compliant in S760,the monitoring engine may refer the customer record to the exceptionhandler for processing in S770.

FIG. 8 is a flow chart illustrating fulfillment in accordance with anembodiment of the invention. The method begins in S800 and thefulfillment engine receives an eligibility indication in S810. Theeligibility indication may be in the form of an eligibility list formultiple eligible customers. In S820, the fulfillment engine calculatesa payment account in accordance with stored rules. In S830, thefulfillment engine determines a destination for the calculated rewardand the process ends in S840. In embodiments of the invention, oncefulfillment has occurred, the system may send the participant a mobilealert or other notification of fulfillment.

FIG. 9 is a flow chart illustrating a method for implementing selectableoptions in accordance with an embodiment of the invention. Inembodiments of the invention, the mortgage payments made by thefinancial institution may constitute merely one selectable aspect of anoverall rewards program managed by the financial institution. Forexample, the customer may choose to apply the rewards arising from themortgage matching system participation to principal payment, but mayalternatively choose to apply the calculated rewards to any otherbenefit offered by the financial institution, such as to payment ofanother loan, for example a home equity loan, or simply to an overallrewards program. In other embodiments, the mortgage matching system maybe wholly separate from the overall rewards program offered by thefinancial institution.

As set forth above, in embodiments of the invention, eligible customersmay be entitled to select a destination for mortgage matching funds. Anembodiment of the method begins in S900 and the system completesmortgage match enrollment in S910. In S920, the system offers selectableoptions to the eligible customer. These selectable options may beoffered for example through a user interface providing selectablecheckboxes. In response to offering the selectable options, the mortgagematching system may receive a user selection as set forth in steps S930,S940, and S950. For example in S930, the system receives a mortgage paydown selection. In S940, the system receives an investment accountselection. In S950, the system receives a selection to accrue rewardspoints. In S960, the selection is stored in a mortgage matching databasefor subsequent retrieval by the fulfillment engine. The method ends inS970.

The method illustrated in FIG. 9 is merely exemplary, as in someembodiments, the customer may not be permitted to make a destinationchoice. For example, in one embodiment, all funds accrued during themortgage matching process will be directed to mortgage pre-payment.Additionally, the method illustrated in FIG. 9 is not exhaustive, and insome embodiments, the customer may be permitted to choose destinationsnot shown on FIG. 9, including, but not limited to, directing the rewardto be transferred to an overall rewards program, such that all rewardsfrom the financial institution are combined, selecting payment of debtsor credit card rewards, or donating the rewards to a charitable ornon-profit organization.

FIG. 10 is a flow chart illustrating operation of refinance componentsin accordance with an embodiment of the invention. The method begins inS100 and a mortgage refinance notice is received in S110. In S120, therefinance components of the mortgage matching system determine thelender for the new mortgage loan. If the lender is not a qualifiedlender for the mortgage matching system in S130, the program will beterminated in S140. In embodiments of the invention, the lender mustremain the same as the lender for the original mortgage in order for therefinance to remain a qualified mortgage. If the lender is a qualifiedlender in S130, the refinancing components calculate the program benefitto the participating customer at the payoff date of the previousmortgage. The refinance components then reduce the payoff amount by thebenefit earned in S160 and enroll the new loan number in S170. Therefinance process ends in S180.

Overall, the reward contribution from the financial institution enablesearly payment of the mortgages of enrolled customers and thussubstantial interest savings for the enrolled customers. Embodiments ofthe invention may allow for payment of higher percentages based on thecustomer's deposited balance with the financial institution in order totarget a premier segment of customers. Furthermore, customers who preferother types of rewards may be able to earn these rewards simply throughtimely payment of mortgages.

While particular embodiments of the invention have been illustrated anddescribed in detail herein, it should be understood that various changesand modifications might be made to the invention without departing fromthe scope and intent of the invention.

From the foregoing it will be seen that this invention is one welladapted to attain all the ends and objects set forth above, togetherwith other advantages, which are obvious and inherent to the system andmethod. It will be understood that certain features and sub-combinationsare of utility and may be employed without reference to other featuresand sub-combinations. This is contemplated and within the scope of theappended claims.

1. A computer-implemented method for rewarding mortgage customers of afinancial institution with a reward payment amount, the methodcomprising: providing enrollment in a mortgage matching system toeligible mortgage customers, wherein eligibility requirements includethe requirement that eligible mortgage customers hold both a mortgageaccount and a checking account with the financial institution; enablingthe customers to make periodic mortgage payments from the checkingaccount to the mortgage account; monitoring continued compliance withthe eligibility requirements and submission of the periodic paymentsusing a monitoring engine implemented by at least one computerprocessor; determining a reward payment amount to be made by thefinancial institution to each complying mortgage customer using afulfillment engine implemented by the at least one computer processor,wherein the reward payment amount is a predetermined percentage ofprincipal and interest paid by each complying mortgage customer during apredetermined time period; and transferring the calculated rewardpayment amount to a pre-selected location for each complying mortgagecustomer, wherein the pre-selected location is accessible to thecorresponding complying mortgage customer.
 2. The method of claim 1,further comprising enrolling the customer in an auto-payment system formaking regular periodic mortgage payments.
 3. The method of claim 1,wherein the pre-selected location is the customer mortgage account. 4.The method of claim 1, wherein determining the reward payment comprisescalculating a pre-determined percentage of principal and interest paidby the customer into the mortgage account.
 5. The method of claim 4,wherein the predetermined percentage is one percent and is calculatedover a twelve month period.
 6. The method of claim 1, further comprisingproviding each customer with multiple selectable locations fordepositing the calculated reward payment, wherein one of the multipleselectable locations is the customer mortgage account.
 7. The method ofclaim 1, further comprising terminating customer participation in themortgage matching program upon detection of non-compliance.
 8. Themethod of claim 1, further comprising preparing and sending periodicreports containing a paid reward amount to each customer.
 9. The methodof claim 1, further comprising processing a refinance application for atleast one complying mortgage customer to provide a new mortgage loan forthe complying mortgage customer.
 10. The method of claim 9, furthercomprising calculating accrued rewards using a refinancing engineimplementing a refinancing processor prior to closing on the refinanceapplication.
 11. The method of claim 10, further comprising reducing apayoff amount by the calculated accrued rewards and enrolling the newmortgage loan in the mortgage matching system.
 12. Acomputer-implemented mortgage matching system for rewarding mortgagecustomers of a financial institution with a reward payment amount, thesystem comprising: an enrollment engine for enrolling eligible mortgagecustomers in the mortgage matching system, wherein eligibilityrequirements include the requirement that eligible mortgage customershold both a mortgage account and a checking account with the financialinstitution and make period payments from the checking account to themortgage account; a monitoring engine for monitoring continuedcompliance with the eligibility requirements and submission of theperiodic payments, the monitoring engine implemented by at least onecomputer processor; and a fulfillment engine implemented by the at leastone computer processor, the fulfillment engine comprising: calculationcomponents for determining a reward payment amount to be made by thefinancial institution to each complying mortgage customer, wherein thereward payment amount is a predetermined percentage of principal andinterest paid by each complying mortgage customer during a predeterminedtime period; and reward transfer components for transferring thecalculated reward payment amount to a pre-selected location for eachcomplying mortgage customer, wherein the pre-selected location isaccessible to the corresponding complying mortgage customer.
 13. Thesystem of claim 12, wherein the enrollment engine further enrolls thecustomer in an auto-payment system for making regular periodic mortgagepayments.
 14. The system of claim 12, wherein the pre-selected locationis the customer mortgage account.
 15. The system of claim 12, whereinthe reward calculation components determine the reward payment bycalculating a pre-determined percentage of principal and interest paidby the customer into the mortgage account.
 16. The system of claim 15,wherein the predetermined percentage is one percent and is calculatedover a twelve month period.
 17. The system of claim 12, furthercomprising program selection components providing each customer withmultiple selectable locations for depositing the calculated rewardpayment, wherein one of the multiple selectable locations is thecustomer mortgage account.
 18. The system of claim 12, furthercomprising an exception handler for terminating customer participationin the mortgage matching program upon detection of non-compliance. 19.The system of claim 12, further comprising reporting components forpreparing and sending periodic reports containing a paid reward amountto each customer.
 20. The system of claim 12, further comprisingrefinance components for processing a refinance application for at leastone complying mortgage customer to provide a new mortgage loan for thecomplying mortgage customer.
 21. The system of claim 20, wherein therefinance components further calculate accrued rewards prior to closingon the refinance application.
 22. The system of claim 21, wherein therefinance components further reduce a payoff amount by the calculatedaccrued rewards and approve enrollment of the new mortgage loan in themortgage matching system.
 23. A computer-implemented method forrewarding mortgage customers of a financial institution with a rewardpayment amount, the method comprising: providing enrollment in amortgage matching system to eligible mortgage customers, whereineligibility requirements include the requirement that eligible mortgagecustomers hold both a mortgage account and a checking account with thefinancial institution; enabling the customer to automatically makeperiodic mortgage payments from the checking account to the mortgageaccount; monitoring continued compliance with the eligibilityrequirements and automatic submission of the periodic payments using amonitoring engine implemented by at least one computer processor;determining a reward payment amount to be made by the financialinstitution to each complying mortgage customer using a fulfillmentengine implemented by the at least one computer processor, wherein thereward payment amount is a predetermined percentage of principal andinterest paid by each complying mortgage customer through theauto-payment system during a predetermined time period; and transferringthe calculated reward payment amount to the mortgage account for eachcomplying mortgage customer; processing a refinance application for atleast one complying mortgage customer to provide a new mortgage loan forthe complying mortgage customer; and calculating accrued rewards using arefinancing engine implementing a refinancing processor prior to closingon the refinance application.
 24. The method of claim 23, furthercomprising enrolling the customer in an auto-payment system for makingregular periodic mortgage payments.
 25. The method of claim 23, whereindetermining the reward payment comprises calculating a pre-determinedpercentage of principal and interest paid by the customer into themortgage account.
 26. The method of claim 25, wherein the predeterminedpercentage is one percent and is calculated over a twelve month period.27. The method of claim 23, further comprising providing each customerwith multiple selectable locations for depositing the calculated rewardpayment, wherein one of the multiple selectable locations is thecustomer mortgage account.
 28. The method of claim 23, furthercomprising terminating customer participation in the mortgage matchingprogram upon detection of non-compliance.
 29. The method of claim 23,further comprising preparing and sending periodic reports containing apaid reward amount to each customer.
 30. The method of claim 23, furthercomprising reducing a payoff amount by the calculated accrued rewards ordepositing the accrued reward in an eligible account.
 31. The method ofclaim 23, further comprising enrolling the new mortgage loan in themortgage matching system.